Why HashiCorp Stock Is Tumbling After Hours

HashiCorp Inc HCP shares are trading lower in Wednesday's after-hours session after the company reported financial results and announced spending cuts, as well as an 8% workforce reduction.

What Happened: HashiCorp said fiscal first-quarter revenue increased 37% year-over-year to $137.98 million, which beat the consensus estimate of $133.11 million, per Benzinga Pro. 

The company reported a quarterly loss of 7 cents per share, which beat estimates for a loss of 14 cents per share. 

HashiCorp also announced targeted cuts in discretionary spending and a workforce reduction of approximately 8%. The company ended the quarter with $1.289 billion in cash, equivalents and investments, down from $1.34 billion year-over-year.

"HashiCorp remains focused on its role as a partner to the Global 2000 as they transition to the cloud, and, despite the difficult macroeconomic environment, we saw meaningful progress with new customers in the first quarter," said Dave McJannet, CEO of HashiCorp.

"And while we saw pressure in the buying process, the large number of new customers gives us ongoing confidence in both the market trend of cloud adoption and our ability to deliver value helping large enterprises operate their cloud infrastructure."

HashiCorp sees fiscal second-quarter revenue in a range of $137 million to $139 million. Full-year revenue is expected to be between $564 million and $570 million.

The company anticipates a loss of 14 to 16 cents per share. HashiCorp sees a full-year loss in the range of 24 cents to 27 cents per share. 

HCP Price Action: HashiCorp shares were down 28.7% after hours at $24.98 at the time of writing, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.